Intertrust Cayman can provide you with the experienced people you need to fulfill the new anti-money-laundering roles required by Cayman's updated Anti-Money Laundering Regulations. The Anti-Money Laundering Regulations, 2017 came into effect in October 2017 with the aim of strengthening Cayman's regulatory framework and maintaining adherence to international standards.
Existing Cayman domiciled funds and structured finance vehicles, private trust companies or entities that are otherwise investing, administering or managing funds or money on behalf of other persons are required to appoint named individuals to the roles of Money Laundering Reporting Officer (MLRO), Deputy Money Laundering Reporting Officer (DMLRO) and AML Compliance Officer (AMLCO) and implement AML policies and procedures by 30 September 2018. From 1 June 2018, any new Cayman entities must be able to immediately demonstrate compliance with these requirements.
What is the risk of non-compliance?
Your business is liable, on summary conviction, to a fine of up to KYD 500,000 or, on indictable conviction, to an unlimited fine and imprisonment of named individuals for two years.
How we can help
We provide the senior, experienced, independent AML professionals you need to fulfill the roles of AMLCO, MLRO and DMLRO. Although the guidance suggests a need to identify three individuals, the role of AMLCO can be combined with either the MLRO or DMLRO role and most financial services providers are expected to appoint two officers to hold a combination of all three roles.
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What are CIMA's expectations of entities which outsource these roles?
- Substantiation that the named individuals on whom reliance is being placed possess adequate and appropriate knowledge and expertise to perform the functions
- Conduct a risk assessment before entering into an agreement
- Prepare an AML agreement setting out the responsibilities of each party
- Review policies and procedures and test them from time to time
- Where the provider operates from a country outside the Cayman Islands, ensure they adopt the Cayman Islands standards in relation to the performance of the function, where the relevant standards are lower when compared to the Cayman Islands
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.